[Federal Register Volume 59, Number 151 (Monday, August 8, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19210]


[[Page Unknown]]

[Federal Register: August 8, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34470; File No. SR-NSCC-94-12]

 

Self Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing of a Proposed Rule Change Seeking 
Permanent Approval for the New York Window Service

August 1, 1994.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'')\1\ notice is hereby given that on July 15, 1994, the National 
Securities Clearing Corporation (``NSCC'') filed with the Securities 
and Exchange Commission (``Commission'') the proposed rule change (File 
No. SR-NSCC-94-12) as described in Items I, II, and III below, which 
Items have been prepared primarily by NSCC. The Commission is 
publishing this notice to solicit comments on the proposed rule change 
from interested persons.
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    \1\15 U.S.C. 78s(b)(1) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change consists of modifications to NSCC's Rules 
and Procedures for NSCC's New York Window service and seeks permanent 
approval of the service. The proposal will permit NSCC to replace the 
participating members' record keeping systems with NSCC's proprietary 
record keeping system. The proposal also sets forth the New York Window 
fee schedule.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, NSCC included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. NSCC has prepared summaries, set forth in sections (A), 
(B), and (C) below, of the most significant aspects of such statements.

(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The New York Window is a service that provides for the processing 
of receives and deliveries of physical securities. The New York Window 
also provides facilities for the custody of physical securities and 
custodial related services for physical securities. Currently, the New 
York Window service is being offered on a pilot basis utilizing each 
member's own record keeping system.\2\ This proposal will permit NSCC 
to offer the New York Window service utilizing NSCC's proprietary 
record keeping system. This system will enable NSCC and members to 
electronically communicate with each other throughout the day. The New 
York Window pilot program also offers a money settlement service to a 
limited number of members. This proposal will enable NSCC to offer the 
money settlement service to all New York Window members.
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    \2\For a complete description of the New York Window pilot 
program, refer to Securities Exchange Act Release Nos. 32221 (April 
26, 1993), 58 FR 36570 [File No. SR-NSCC-93-03] (order temporarily 
approving proposed rule change until April 30, 1994) and 33558 
(January 31, 1994), 59 FR 5807 [File No. SR-NSCC-93-14] (order 
temporarily approving proposal rule change until January 31, 1995).
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    The New York Window service is offered to members under several 
conditions. First, at all times, NSCC acts as an agent for members 
using the New York Window service and not as principal for its own 
account. Second, each New York Window member agrees that it will not be 
entitled to reimbursement from NSCC for any losses suffered or 
liabilities incurred as a result of the New York Window service. Third, 
all actions taken by NSCC in connection with the New York Window 
service will be based on instructions from members. Members will have 
the ability to change instructions or add instructions throughout the 
day. NSCC will have the ability to interactively communicate with 
members with respect to instructions being processed. Each day, NSCC 
will report to members the results of that day's processing (i.e., 
items received and delivered) and will provide members with an updated 
stock record indicating the items being held in custody for the member 
under the New York Window service.
    The proposal also sets forth the fees that NSCC will charge for the 
New York Window service.

IV. Other Service Fees:*                                                
U. New York Window                                                      
  1. Over The Window--............................  $12.00 per item     
    Receives/Deliveries...........................                      
  2. Envelope Settlement Service/Receives                               
    a. 1-100 daily................................  6.00 per item       
    b. 101-150 daily..............................  5.00 per item       
    c. 151-and up daily...........................  4.00 per item       
  3. Envelope Settlement Services/Deliveries......  6.00 per item       
  4. FOSS/DSS--Receives/Deliveries (Money Only)...  3.50 per item       
  5. Transfers....................................  15.00 per item      
  6. Reorganizations..............................                      
    a. One-Way....................................  15.00 per item      
    b. Two-Way....................................  18.00 per item      
  7. Underwritings (Coordinating Distribution)....  35.00 per item      
  8. Special Handling.............................  35.00 per hour      
  9. Custody (Per Position Per Issue).............  .10 per day         
  10. Return to Firm (Securities).................  .10 per item        
  11. Internal Cross Receives/Deliveries..........  7.00 per item       
  12. Messenger Service (Accommodation)...........  7.50 per hour       
  13. Accommodation Handling......................  3.50 per item       
  14. Settlement Reconciliation...................  25.00 per day       
                                                                        
Italic indicates additions.                                             
*Indicates previously underlined text.                                  

    The New York Window service will afford members with the 
opportunity to centralize their processing of physical securities. 
Therefore, the proposed rule change is consistent with NSCC's 
obligation under Section 17A of the Act to promote the prompt and 
accurate clearance and settlement of securities transactions.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    NSCC does not believe that the proposed rule change will impose any 
burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants or Others

    Comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within thirty-five days of the date of publication of this notice 
in the Federal Register or within such longer period (i) as the 
Commission may designate up to ninety days of such date if it finds 
such longer period to be appropriate and publishes its reason for so 
finding or (ii) as to which the self-regulatory organization consents, 
the Commission will:
    (A) by order approve such proposed rule change or
    (B) institute proceedings to determine whether the proposed rule 
change should be approved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing. Persons making written submission 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549. 
Copies of the submissions, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for inspection and copying in the 
Commission's Public Reference Section, 450 Fifth Street, NW., 
Washington, DC 20549. Copies of such filings will also be available for 
inspection and copying at the principal offices of NSCC. All 
submissions should refer to File No. SR-NSCC-94-12 and should be 
submitted by August 29, 1994.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\3\
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    \3\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-19210 Filed 8-5-94; 8:45 am]
BILLING CODE 8010-01-M